Coldwell Banker Residential Brokerage Home Buyers Guidebook - 2017 - Page 23

GLOSSARY OF REAL ESTATE TERMS Understanding the Language Adjustable Rate Mortgage (ARM) A mortgage with an interest rate that changes over time in line with movements in the index. ARMs are also referred to as AMLs (adjustable mortgage loans) or VRMs (variable rate mortgages). Adjustment Period The length of time between interest rate changes on an ARM. For example, a loan with an adjustment period of one year is called a one-year ARM, which means that the interest rate can change once a year. Amortization Repayment of a loan in installments of principal and interest, rather than interest- only payments. Annual Percentage Rate (APR) The total finance charge (interest, loan fees, points) expressed as a percentage of the loan amount. Appraisal An estimate of the property’s value provided by a professional appraiser. Assumption of Mortgage A buyer’s agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to release the origina &'&vW"W7VǒFR6VW"g&ЦƖ&ƗG&V@V7V&6VBGVRBFPVBb6R'FvvW2"FW"rFW&Ц2&FW 6WFW2v2ffW"FW&66P"V&W7BW&V6VB&FW"2FP6vVFvVVBbFW6BrvF'&Vbw&GFVw&VVVBFVFW"F6G&7Bf"FR6Rb&VW7FFR'WFvW&VB&WBFW&W7BFB'&w0FRFR&FRFRFvFvW"W&VB&FRFV&'&W@FW&W7BFBvW'2FRFR&FRFV&&ǐFRvrFR'WW"F&P&VFǒVƖgBF7&V6RVG206Rw&w26F֖VФf&b&VW7FFRvW'6vW&RFPvW"&V6VfW2FFRF'F7V"V@B2&'FFRFW&W7B6W'F6&V2FRVBG6Vb2vVW&ǐ6W&FVǒvVB76Rv6RFW& 7W&f6Rv2f"6VƖw26W'fR0G2&VF&W26FRƖ֗BrV6FW&W7B&FP"FǒVB66vRVFW BV6FW7FVB"fW"FRƖfR`FR'FvvR67VW"g&VB&FV7F'W&VP2FWVFVBvV7bFRVFV@7FFW2vfW&VB&W76&Rf &FV7Fr67VW'2g&Vf"FV6WFfR"'W6fR&7F6W2g&FRf66V7F"7V62&2VFW'2BFW f66W266&W6W'fW0FRVBbFR'WW.( 2ƗVB66&VrgFW"rFRFvV@Br66r67G242e'06fVG26FF2B&W7G&7F2F7VVBFB6G&2FRW6R&WV&VVG2B&W7G&7F2b&W'G6W'Ff6FRb6֗FV@FRVFW.( 2&fbdv60W7VǒvBf"WF6F26W'Ff6FRb&V6&RfVR5%bF7VVBFBW7F&Ɨ6W2FPVfVRBV@bdwV&FVVB'FvvR6GFVW'6&W'G66rF667W&PFR66rF667W&R2&V6VfVB'FP67VW"BV7BF&VRF2&"F66rगB6VFW2FW&2&V7FVBFǐVG2B66w267G2F22W7Vǐ6&VBFFRW7FFR&V6VfV@V&ƖW"FV7W&R67W&766r7FFVV@FRf6F667W&R7FFVVBF@66VG2f"bFRgVG2&V6VfVB@WV7FVBBFR66r6VFrFW6G0f"FW2&B7W&6RB'FvvP7W&6R6֗FVBW&@FRW&BGW&rv6&f0fƖB6FvV76FFFBW7B&R6F6fVB&Vf&P6G&7B2&Frf"7F6R6W0w&VVVB&R6FvVBWFP'WW"'Frf6r6fW'66W6P&f66R$2FBV&W0R'WW'2F6vR$FfV@&FRW7VǒgFW"FRf'7BFW7FV@W&BFRWrfVB&FR2vVW&ǒ6W@BFR&WfƖrFW&W7B&FRf"fVB&FP'FvvW2F26fW'6fVGW&R67@WG&6W&FfPf&bVFRvW'6v66'&F"'W6W72G'W7BVFGG2FFPF&W'GBw&G267W7&vG2F6&VFW'2'V2b&&WF'V6W0"6֖"'&vVVG25$ 6W'FfVB&W6FVF'&W"F&R6W'FfVB'&W"W7B&RV&W"bFRF766Fb&VF'2fRffRV'0WW&V6R2Ɩ6V6VB'&W"BfP6WFVB&WV&VB&W6FVFFf66W'6W25%06W'FfVB&W6FVF7V6Ɨ7BF0FW6vF2&V6v旦VBGW7G'vFR0FR7&bW6VV6R&W6FVF6W0B2FRvW7BFW6vFv&FVBFP&W6FVF&VW7FFR6W2GW7G'*#r6GvV&W"&W6FVF&VW7FFR2&vG2&W6W'fVB6GvV&W"&W6FVF'&W&vRgVǒ7W'G2FR&6W2bFRf"W6r7BBFRWV'GVG7BW&FVB'7V'6F'b%B26GvV&W"BFR6GvV&W"v&R&Vv7FW&VB6W'f6R&2vVB'6GvV&W"&VW7FFR2&VW7FFRvVG2ffƖFVBvF6GvV&W"&W6FVF'&W&vR&RFWVFVB6G&7F"6W2766FW2B&RBVVW2b6GvV&W"&W6FVF'&W&vR#